March 22, 2025 - 13:15
President Donald Trump announced on Friday that the Small Business Administration (SBA) will take over the Department of Education’s extensive student loan portfolio. This move is part of his broader strategy to dismantle the Department of Education and redistribute more authority over educational matters to individual states.
In his statement, Trump emphasized the need for a streamlined approach to managing student loans, suggesting that the SBA is better equipped to handle the financial aspects of student lending. By shifting this responsibility, the administration aims to reduce federal oversight and encourage state-level initiatives in education.
Critics of the proposal argue that transferring student loans to the SBA could complicate access to financial aid for students and undermine the protections currently in place for borrowers. Supporters, however, believe that this change could foster a more competitive environment for educational financing, potentially benefiting students in the long run. The implications of this decision will likely be a topic of heated debate in the coming months.
